4 Surprising Things That Will Increase Your Homes Equity
Investing in real estate is generally considered a sound strategy for growing wealth, especially in areas where home values are rising, like The Research Triangle. Home equity is a homes value minus liens or debts against a home. There are a number of factors within and outside of a homeowner's control that amounts to a home's equity. To grow home equity and its’ values there are some surprising things you may not be aware of. As experts in home values in The Triangle, we are sharing some of our top "surprising" tips.
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Meticulous Renovation Documentation
It is well known that investments in renovations such as a new roof, a kitchen upgrade, or bath upgrades increase the value of a home. What many people do not know is that the documentation accompanying these renovations is equally important. From changing filters to regular maintenance, keeping records accounting for the renovations and upgrades give an additional lift in value to a home. According to the CEO of Rezdox, a home equity calculator tool, "Just by capturing the total expenses in their home improvements, our members recognized an additional 1.55% lift in home values compared to their homes’ Zillow Zestimates, Our most active users saw greater equity gains, between 3-5%."The paper trail for your efforts increases value, as do the upgrades.
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Modern Curb Appeal
We publish content regularly on our blog on the types of updates that new buyers are looking for on The Triangle. Updating homes with the latest paint colors and trims can add more value to an older home. What is more, retrofitting new types of spaces like home offices into bedrooms with shelving systems gives them even more appeal in the age of hybrid work from home arrangements. This makes your home more desirable, in a local market.
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Inflation
Inflation is bad for buying power, but good for home equity. As a dollar decreases in value, inflation leads to an increase in home equity, because the mortgage balance will not decrease. In fact, with a conventional mortgage, it can decrease an amortized loan. During inflationary periods many investors purchase real estate to secure assets.
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Making Space
Modernizing space increases equity, renovation increases equity, and adding dwellings also increases equity. Whether you are looking to add another bedroom, a garage, or home office, these upgrades to space increase equity and desirability on the market. We also see increases in home value where investments are made in outdoor living space as well.
If you are thinking of investing in Real Estate in The Triangle, consider having a consultation with My NC Homes. We have been transacting in real estate, for both buyers and sellers for over 50 years and understand where windfalls and shortcomings exist in Research Triangle real estate. Let us guide you towards building home equity and making solid real estate decisions. Contact us today, or find out what your home is worth here.
Posted by Larry Tollen on
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